Digitalization of Wine Estates: Key Trends

Digital technology is expanding across all sectors, and for good reason—it is now a major driver of business growth! However, in the wine industry, this transition is taking longer, largely due to the sector’s rural nature.

However, it’s important to note that 49% of internet users check online before visiting a store. This is THE key statistic that highlights the importance of your online presence! This constant need to have all product information at their fingertips, at any time of day, is a crucial factor for internet users that will steer their purchase toward the most visible product. Today, the ability to identify customers and track their online activity allows retailers to offer better service to consumers. Thus, the main challenge of the digital transition lies in the ability to recreate a consumer environment that fosters trust and enjoyment, particularly for wine.

The challenge? The transparency that all potential buyers seek must be the cornerstone of digital communication. The goal is to intelligently combine the authenticity of a face-to-face interaction with the wealth of information available online, without losing the user’s attention.

Online wine sales as a growth driver

Over the years, online wine sales have continued to grow at a steady rate of more than 30% per year. In 2015, 29% of independent winemakers offered online sales through their websites. This trend is confirmed by the fact that online sales account for approximately 10% of total wine sales by value in France.

This is largely due to the emergence of specialized marketplaces, which offer consumers valuable guidance in making purchasing decisions by applying sales methods specifically tailored to online shopping. According to a study by Fevad/Médiamétrie, 54% of internet users have already made a purchase on marketplaces. This demonstrates the ever-growing appeal of marketplaces among consumers, who can compare the various products available. This is not a new phenomenon, but marketplaces are set to become a major topic of discussion as they take an increasingly significant share of the overall wine distribution channels.

Online marketplaces as a complement to in-store sales

In 2016, 75% of online retailers also operated their own physical stores. This demonstrates a clear desire on the part of customers to first gather information before making a purchase and, above all, to access information more flexibly by specifying their needs online. Subsequently, customers will have the option to visit a store to find what they saw during their online search or to complete their purchase directly online. The challenge for the winery is to be visible so that customers recognize these wines and are drawn to them rather than those of competitors. This is directly reflected in the Oxatis–KPMG Study, which highlights customer satisfaction thanks to physical store owners who were able to provide better information to their customers—51% of them.

The search for a supportive community

In 2015, according to a Fevad/Médiamétrie study, 53% of consumers sought out reviews and comments from other consumers to make the best possible choice from the vast array of options available. In fact, it was Michel Rolland, the French oenologist, who said in March 2015: “I believe that, from now on, ratings have no future. That was a different era. It worked for the past thirty-five years, but today they’re going to disappear, because any taster can have their own opinion on what’s best; it will be a valid opinion, but it will be theirs, not yours or mine. We’ll taste a wine, and I won’t like it, but you will. So who has bad taste? You or me? We don’t know.” All of this shows that consumers are much more attached to a community that resembles them than to experts with whom they don’t identify. As a result, 7 out of 10 internet users consider other customers’ reviews before making a choice.

Tablets and smartphones as consumer tools

Only 12% of independent winemakers’ websites are optimized for mobile devices. This figure alone highlights how far behind the wine industry has fallen, even as consumers increasingly use multiple devices to make purchases. According to Les Echos, 50% of e-commerce purchases are already made across multiple devices, and this figure is expected to rise in the coming years. Retailers must therefore adapt the online shopping experience to meet the growing demand for the use of various devices (tablets, smartphones, etc.). This market is now valued at nearly 17 billion euros in 2018, up from 7 billion euros three years earlier. The user-friendly design of these devices allows consumers to easily search for information on various offers anytime and anywhere, and to access the best deals with just a few clicks. According to a study by Fevad/CSA, mobile devices are a tool used by 60% of customers to navigate physical retail locations by comparing prices, checking customer reviews, and reviewing technical specifications. The growing trend of purchases made via these devices presents a real challenge for wineries. For them, this is a critical turning point to position themselves effectively and benefit from prime exposure.

The digital transformation of the wine industry has been underway for several years, and it is essential for wineries to offer a digital shopping experience that is just as good as buying directly from the winery.

This applies not only to wine purchases but also to wine tourism services, which are experiencing strong growth. Given consumer habits across all types of purchases, those related to wine must also keep pace. This is a real challenge for wineries! Some startups, such as Les Grappes, have therefore launched to support winemakers in their digital transition.

Sources: SoWine 2015 Study, E-Performance Barometer by BEM KEDGE Business School